Result Highlights

• Operating profit after tax, before abnormals, up 19.8% to $3,377 million

• Final dividend 64 cents per share, fully franked

• Return on shareholders' funds of 18.1%

• Earnings per ordinary share growth 13.2%

• Total shareholder return of 19.1%

• Total income growth of 7.5% excluding MLC and AASB 1038

• Loans and advances up 18%

• Australian margin up 1 basis point to 3.03% excluding impact of MLC funding

• Non interest income from banking up 11%

• Non interest income comprises 50.6% of total income for the year and 63.3% for the quarter

• Cost growth contained to 2.6% with cost/ income ratio (excluding MLC) falling to 51.2%

• Impaired assets down 6% and total bad debt provisioning coverage increased to 183%

• Maiden quarter's contribution from MLC of $107 million ($54 million Margin on Services profit and $53 million revaluation gains)

Profit and Loss Statement

	Quarter to		Year to
	Sept 2000 $M	Sept 1999 $M	Sept 2000 $M	Sept 1999 $M	Sept2000/ Sept 1999 %
Net interest income	1,584	1,538	6,371	6,066	5.0
Non interest income	2,729	1,153	6,523	4,563	43.0
Total operating income	4,313	2,691	12,894	10,629	21.3
Non interest expenses	2,679	1,533	7,032	5,701	(23.4)
Underlying profit	1,634	1,158	5,862	4,928	18.9
Doubtful debts charge	173	116	588	581	(1.2)
Operating profit before goodwill and abnormal items	1,461	1,042	5,274	4,347	21.3
Income tax expense attributable to operating profit	439	253	1,700	1,321	(28.7)
Operating profit after tax before goodwill and abnormal items	1,022	789	3,574	3,026	18.1
Goodwill	49	55	197	206	4.4
Operating profit after tax and goodwill before abnormal items	973	734	3,377	2,820	19.8
Abnormal items	(204)	-	(204)	-
Tax benefit attributable to abnormal items	68	-	68	-
Abnormal items after tax	(136)	-	(136)	-
Operating profit after tax, goodwill and abnormal items	837	734	3,241	2,820	14.9
Outside equity interests	2	-	2	(1)	large
Operating profit after tax, goodwill and abnormals	835	734	3,239	2,821	14.8
Distributions to holders of National Income Securities and Trust Units	54	30	198	74	large
Operating profit after tax, goodwill and abnormal items attributable to ordinary shareholders	781	704	3,041	2,747	10.7

Key Performance Measures

	Quarter to		Year to
	Sept 2000	Sept 2000	Sept 2000	Sept 1999
All figures are in A$ millions unless otherwise stated. All ratios are pre abnormal items unless otherwise stated.
Shareholder Measures
EVA	299	294	1,477	1,390
Total Shareholders' returns (1)			19.1%	14.9%
Earnings per ordinary share (2)	60.6c	47.5c	211.3c	186.6
Dividend per share	64c	58c	123c	112c
Return on shareholders' funds	19.9%	17.8%	18.1%	17.3%
Earnings per ordinary share (pre goodwill)	63.9c	51.2c	224.4c	200.6c
Tangible return on tangible shareholders' funds	24.4%	23.6%	22.8%	22.8%
Return on tangible assets	1.32%	1.25%	1.19%	1.18%
Productivity Measures
Profit per FTE ($'000)	83	69	72	66
Underlying profit per FTE ($'000)	139	98	125	108
Net Interest Income
Net interest spread	2.36%	2.45%	2.40%	2.47%
Net interest margin	2.72%	3.00%	2.88%	3.00%
Net interest margin adjusted (4)	2.84%	3.00%	2.92%	3.00%
Non Interest Income
Non interest income to total income	63.3%	42.8%	50.6%	42.9%
Non Interest Expenses (excluding goodwill)
Cost/income ratio (3)	62.1%	57.0%	54.5%	53.6%
Cost/income ratio adjusted (4)	53.3%	57.0%	51.2%	53.6%
Costs to assets (3)	3.62%	2.49%	2.46%	2.25%
Costs to assets adjusted (4)	2.13%	2.49%	2.10%	2.25%
Asset Quality
Bad and doubtful debt charge to profit (3)	17.8%	15.8%	17.4%	20.6%
Total Provision Coverage	182.5%	158.4%	182.5%	158.4%
Capital
Tier 1 ratio			6.64%	7.78%
Tier 2 ratio			4.00%	2.85%
Deductions			(1.36%)	(0.29%)
Total capital ratio			9.28%	10.34%
Wealth Creation Businesses
Funds Under Management and Administration ($ billion)			61	21
Assets Under Custody and Administration ($ billion)			285	180
HomeSide Mortgage Servicing Portfolio (US $billion)			173	146

(1) Total shareholder return measures total accumulated value being share price appreciation and dividends.
(2) Based on earnings attributable to ordinary shareholders.
(3) Credit expenses associated with HomeSide's loans sold to third parties are now classified as a charge for doubtful debts. Comparatives have been restated to classify credit expenses, previously reported in General Expenses - Other, on a consistent basis with the current classification.
(4) These calculations exclude the impact of MLC and AASB 1038.

Supplementary Profit and Loss Statement

This supplementary profit and loss statement presents the Group result adjusted for the acquisition of MLC on June 30, 2000 and the adoption of AASB 1038 from October 1, 1999. This statement is therefore prepared on the same basis as the results for the year to September 1999.

For the year ended September 30, 2000	Group	Impact of the acquisition of MLC and AASB 1038	Group pre MLC and AASB 1038	Year to September 1999 Group	Year to September 2000/ September 1999
	$M	$M	$M	$M	%
Net interest income(1)	6,371	(90)	6,461	6,066	6.5
Non interest income	5,672	707	4,965	4,563	8.8
	12,043	617	11,426	10,629	7.5
Revaluations of life insurance subsidiaries(2)	202	202	-	-	-
Impact of AASB 1038	649	649	-	-	-
Total Income	12,894	1,468	11,426	10,629	7.5
Personnel	3,401	62	3,339	3,267	(2.2)
Occupancy	512	6	506	498	(1.6)
Information technology costs	216	19	197	186	(5.7)
Other	2,330	520	1,810	1,750	(3.5)
	6,459	607	5,852	5,701	(2.6)
Impact of AASB 1038	573	573	-	-	-
Non interest expenses	7,032	1,180	5,852	5,701	(2.6)
Underlying Profit	5,862	288	5,574	4,928	13.1
Doubtful debts charge	588	-	588	581	(1.2)
Operating profit before goodwill and abnormal items	5,274	288	4,986	4,347	14.7
Income tax attributable to operating profit	1,568	8	1,560	1,321	(18.1)
Income tax attributable to revaluations	56	56	-		-
Income tax attributable to AASB 1038	76	76	-	-	-
Total income tax expense	1,700	140	1,560	1,321	(18.1)
Operating profit after tax before goodwill and abnormal items	3,574	148	3,426	3,026	13.2
Goodwill	197	-	197	206	4.4
Operating profit after tax and goodwill before abnormal items	3,377	148	3,229	2,820	14.5
Abnormal items	(204)	(108)	(96)	-	-
Income tax benefit attribuable to abnormal items	68	37	31	-	-
Abnormal items after tax	(136)	(71)	(65)	-	-
Operating profit after income tax, goodwill and abnormals	3,241	77	3,164	2,820	12.2
Outside equity interests	2	2	-	(1)	large
Operating profit after tax before abnormals and distributions	3,239	75	3,164	2,821	12.2
Distributions
Preference shares	61	-	61	58	5.2
National income   securities	137	-	137	16	-
Operating profit after tax, goodwill and abnormal items attributable to ordinary shareholders	3,041	75	2,966	2,747	8.0

(1) Includes the additional costs of subordinated debt funding ($57 million) and the opportunity cost of earnings on surplus capital ($25 million).
(2) Mark to market profit related to revaluation of subsidiaries of National Australia Financial Management as follows: MLC and its subsidiaries $123 million, other $79 million.
(3) Includes $47 million charge for revaluation of future income tax benefits (FITB) in Australia.